<PAGE>
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Plan Period From January 1, 2000 to January 13, 2000
Commission File Number 1-5358
SUNDSTRAND CORPORATION
EMPLOYEE SAVINGS PLAN
UNITED TECHNOLOGIES CORPORATION
One Financial Plaza
Hartford, Connecticut 06101
<PAGE>
FINANCIAL STATEMENTS OF THE SUNDSTRAND
CORPORATION EMPLOYEE SAVINGS PLAN
Report of Independent Accountants
To the Participants and Administrator of the
Sundstrand Corporation Employee Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statement of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Sundstrand Corporation Employee Savings Plan (the "Plan") at January 13,
2000 and December 31, 1999, and the changes in net assets available for benefits
for the period ended January 13, 2000 in conformity with accounting principles
generally accepted in the United States. These financial statements are the
responsibility of the Plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
As discussed in Note 1, effective January 13, 2000, the Plan was merged into two
qualified plans of United Technologies Corporation and all assets of the Plan
were transferred to those plans.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Hartford, Connecticut
July 11, 2000
<PAGE>
Sundstrand Corporation Employee Savings Plan
Statement of Net Assets Available for Benefits
January 13, December 31,
(Thousands of Dollars) 2000 1999
Assets:
Investments (Note 3) $ - $471,234
Loans to participants - 15,312
Net Assets Available for Benefits $ - $486,546
The accompanying notes are an integral part of these financial statements.
<PAGE>
Sundstrand Corporation Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits
Period From
January 1, 2000 to
(Thousands of Dollars) January 13, 2000
Reduction to net assets attributed to:
Investment loss:
Net depreciation in fair value of investments $ (4,590)
Dividends 212
Contributions:
Participants' 474
Total reductions (3,904)
Deductions from net assets attributed to:
Distributions to participants (34,026)
Administrative expenses (4)
Transfers to other plans (Note 1) (448,612)
Total deductions (482,642)
Net decrease (486,546)
Net Assets Available for Benefits, December 31, 1999 486,546
Net Assets Available for Benefits, January 13, 2000 $ -
The accompanying notes are an integral part of these financial statements.
<PAGE>
SUNDSTRAND CORPORATION
EMPLOYEE SAVINGS PLAN
Notes to Financial Statements
1. Description of the Plan
General
The Sundstrand Corporation Employee Savings Plan (the "Plan") is a defined
contribution plan covering all employees of Sundstrand Corporation who have
completed 1,000 hours of employment within a 12-consecutive-month period.
The following is a brief description of the Plan. A complete description of
the provisions of the Plan can be obtained by referring to the Plan
document.
On June 10, 1999, United Technologies Corporation ("UTC") acquired
Sundstrand Corporation and merged it with its Hamilton Standard division to
form a wholly owned subsidiary, Hamilton Sundstrand Corporation. Effective
January 13, 2000, the Plan was merged into the UTC Employee Savings Plan and
the UTC Represented Employee Savings Plan (the "UTC Plans"). As a result,
all of the Plan's assets were transferred to the respective UTC Plans.
Contributions and Vesting
Participants may elect to contribute, through payroll deductions, up to 20
percent of their eligible compensation, as defined by the Plan.
Participants direct the investment of their contributions into various
investment options offered by the Plan. The Plan offered 26 investment
options to the participants during the period ended January 13, 2000: UTC
Stock Fund; seven Growth Funds; five Growth and Income Funds; three Balanced
Funds; four Life Strategy Funds; four fixed Income Funds; and two Money
Market Funds. Plan participants also had the option of electing life
insurance coverage through the Life Insurance Fund. Under this option,
participant contributions were used to purchase life insurance coverage
for the participant and/or his or her beneficiaries. Effective July 1, 1996,
new policies or increased coverage through the Life Insurance Fund were
no longer available. Existing policies were unchanged and premium deductions
for those policies will continue. Transamerica Assurance Company is the
carrier of life insurance coverage.
The company matching contribution is $1.00 on each $1.00 of the
participant's eligible contributions from the first 2 percent of base pay.
Employer and participant contributions are deposited into the investment
funds in accordance with the participants' elections.
Participant contributions, plus actual earnings thereon, are fully vested at
all times under the Plan. Employer contributions, plus actual earnings
thereon, become fully vested after five years of eligible service.
Participant Accounts
Interest, dividends, and realized and unrealized gains and losses on
investments of the funds are allocated directly to each participant's
account by Vanguard Fiduciary Trust Company ("Vanguard"). Forfeited balances
of terminated participants' nonvested amounts are used to reduce future
employer contributions. For the period ended January 13, 2000, there were
approximately $20,100 of forfeitures.
Trustee and Recordkeeper
All of the Plan's assets are held by Vanguard, the Plan trustee, who also
has participant account recordkeeping responsibilities.
Participant Loans
Participants may elect to borrow from their balance in any of the funds
except the Life Insurance Fund a minimum of $500 up to a maximum of $50,000
or 50 percent of their account balance, whichever is less. Participants
borrowing from their accounts for the purpose of purchasing a principal
residence may select a repayment term of up to 15 years, with all other
loans having a repayment term of not more than five years. Loans are repaid
with interest, through equal payroll deductions over the loan term. The
interest rate is equal to the prime rate, published in The Wall Street
Journal on the last business day of each month. Loan payments are allocated
between the individual funds based on the respective contribution percentage
at the time of repayment.
Payment of Benefits
Generally, on termination of service due to death, disability, or
retirement, benefits are paid in a lump sum to a terminating participant.
Other
The Sundstrand Stock Fund was liquidated upon the merger of Sundstrand
Corporation and UTC. Each share of Sundstrand common stock in the
Sundstrand Stock Fund was converted into a cash portion plus a UTC stock
portion in accordance with the merger agreement dated February 21, 1999.
The cash portion was $35.00 per share and was deposited in the Vanguard
Treasury Money Market Fund. The portion converted to UTC stock was
deposited in the UTC Stock Fund. No further contributions can be made to this
fund.
2. Summary of Accounting Principles
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method
of accounting, except for benefits, which are recorded when paid.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value as determined by the Plan
trustee, typically by reference to published market data. The UTC Stock Fund
is valued at its year-end unit closing price (comprised of year-end market
price plus the cash position that has not been invested in UTC stock).
Participant loans are valued at cost, which approximates fair value.
Purchases and sales of investments are recorded on a trade-date basis.
Interest income is accrued when earned. Dividend income is recorded on the
ex-dividend date. Capital gain distributions are included in dividend
income.
<PAGE>
Plan Expenses
Terminated and retired participants pay an annual administration fee. All
other administrative expenses during the period from January 1, 2000 to
January 13, 2000, such as trustee and recordkeeping fees, were paid directly
by the employer.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
3. Investments
The following presents investments that represent 5 percent or more of the
Plan's net assets:
January 13, December 31,
2000 1999
(thousands of dollars, except unit amounts)
Vanguard 500 Index Fund
714,092 units in 1999 $ - $96,638
Vanguard Treasury Money Market Fund,
86,767,064 units in 1999 - 86,767
Vanguard U.S. Growth Fund,
1,621,083 units in 1999 - 70,566
Vanguard Windsor II Fund,
2,286,854 units in 1999 - 57,103
4. Related-Party Transactions
Certain Plan investment options are managed by Vanguard Fiduciary Trust
Company. Vanguard is the Plan's trustee and recordkeeper, as defined by the
Plan and, therefore, these transactions qualify as party-in-interest
transactions.
5. Plan Merger
As discussed in Note 1, the Plan was merged into the UTC Plans as of January
13, 2000. The merger did not constitute a plan termination under te
provisions of the Plan. Had a complete or partial termination, or complete
discontinuance of contributions thereunder occurred, all participants would
have become fully vested in their accounts.
6. Tax Status
The Internal Revenue Service ruled on September 21, 1995, that the Plan
qualifies under section 401(a) of the Internal Revenue Code ("IRC"). The
Plan has been amended since receiving the determination letter. However, the
Plan administrator and legal counsel believe that the Plan is designed and
was being operated through the merger date in compliance with the applicable
requirements of the IRC.
<PAGE>
SIGNATURES
The Plan (or other persons who administer the employee benefit plan),
pursuant to the requirements of the Securities Exchange Act of 1934, has
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
SUNDSTRAND CORPORATION
EMPLOYEE SAVINGS PLAN
Dated: July 11, 2000 By: /s/ Michael C. Sankner
Michael C. Sankner
Manager, Actuarial Administrator
United Technologies Corporation
